SOUTH AFRICAN LISTED PROPERTY REVIEW The SA Listed Property Index (J253) recorded a positive return
of 0.04% for the month ended April 2015. The yield to maturity
(YTM) on the Long Term Government Bond Index weakened
during the month to end the month at 7.96% (7.79% - 31st
March 2015). The SA listed property historic yield ended the
month at 6.0% excludes Attacq NEPI, Rockcastle and Pivotal
(6.0% - 31st March 2015). The SA listed property sector historic
rolled yield was trading at a premium spread of 1.95% to the
Long term Government Bond yield to maturity at 30 April 2015
(1.79% - 31st March 2015.)
Asset Class
SA Equities
2
4
SA Cash
1
SA Property
SA Bonds
3
MTD
YTD
12 months
4.70%
10.82%
17.82%
0.51%
2.05%
6.67%
0.04%
13.74%
38.26%
-0.49%
2.49%
11.89%
Source: Catalyst Fund Managers, RMB Credit Research
Note: 1-SA Listed Property Index, 2-All Share Index, 3-All Bond Index,
4-Stefi
SA Equities recorded the highest total return (4.70%) of the four
traditional asset classes for April 2015. SA Cash (0.51%), SA
Property (0.04%) and SA Bonds (-0.49%) were the next best
performing asset classes. For the last 12 months SA Listed
Property has recorded the highest total return (38.26%), followed
by SA Equities (17.82%), SA Bonds (11.89%) and SA Cash
(6.67%).
Rebosis and Ascension issued its circulars to their respective
unitholders for Rebosis proposed takeover of Ascension
Properties. Redefine International reported its interim results for
the period ended 28 February 2015, distribution growth per unit
was 6.7% compared to the previous comparable period.
Vukile raised R1.1 billion and Leaf Capital placed redefine
shares valued at R840 million via accelerated book builds. Both
transactions were well supported and were oversubscribed.
Real Estate fundamentals in South Africa remain challenging,
but strong capital markets and lower yields for longer will be
supportive of listed real estate performance. In the short term,
listed real estate returns are likely to take their direction from
capital markets rather than real estate fundamentals. Over the
long term, real estate fundamentals will drive performance.
.
.
.
.
The market saw the conclusion of Growthpoint’s acquisition of
Acucap during the month. Pivotal property fund was included in
the SAPY on the 20th April in place of Acucap. From a local
results perspective Rebosis reported an 8.2% growth in
distribution per unit for its interim period ended 28th February
2015.
Compiled by:
Paul Duncan
CFA
André Stadler
CFA
Cape Town
Jamie Boyes
CA(SA)
Zayd Sulaiman
CA(SA)
Andrew Cattell
B.Comm
Curwin Rittles
CA(SA)
Tiffany Jones
CA(SA)
Mvula Seroto
CA(SA)
Theodore Frysen
CA(SA)
Tel: (021) 657 5500
Email:
[email protected]
Website:
www.catalyst.co.za
MAY 2015
SECTOR SNAPSHOT 30 April 15 RSA Long term gilt (RLRS) 7.96 %
Share
Market capitalisation
COMBINED MARKET CAP
WEIGHTED INDEX
GROWTHPOINT
REDEFINE
NEW EUROPE PROP
RESILIENT
HYPROP
ROCKCASTLE
CAP PROP
ATTACQ
RI PLC
FORTRESS-B
FOUNTAINHEAD
VUKILE
SA CORPORATE
EMIRA
SYCOM
PIVOTAL
FORTRESS-A
INVESTEC PROPERTY FUND
OCTODEC
REBOSIS
DELPROP
ACCPROP
ARROWHEAD B
ARROWHEAD A
TEXTON
IAPF
HOSPITALITY-A
DIPULA-A
ASCENSION-A
DIPULA-B
TOWER
SAFARI
FAIRVEST
Ascension-B
SYNERGY B
SYNERGY A
HOSPITALITY-B
452 903 780 000
75 665 580 000
47 084 090 000
40 951 480 000
34 039 550 000
29 798 870 000
28 784 920 000
24 249 500 000
18 625 780 000
15 732 340 000
13 978 210 000
11 615 470 000
10 974 590 000
10 080 330 000
9 266 480 000
7 805 130 000
7 503 000 000
7 483 330 000
7 418 100 000
6 690 220 000
5 984 120 000
4 919 680 000
4 597 960 000
4 249 800 000
4 199 210 000
2 960 440 000
2 892 400 000
2 364 840 000
2 125 060 000
1 853 170 000
1 796 940 000
1 619 570 000
1 481 630 000
1 228 850 000
1 106 500 000
797 650 000
566 330 000
412 660 000
Historic
Rolled
Close
yield
2791
1206
14500
9947
12250
3395
1368
2492
1084
2998
999
1907
498
1815
3900
2510
1605
1700
2830
1330
940
665
1008
996
1160
1173
1639
1101
600
931
980
860
205
294
750
1196
286
6.00%
6.2%
6.7%
3.2%
3.9%
4.4%
3.1%
6.4%
N/A
5.7%
2.3%
6.2%
7.4%
7.4%
7.4%
5.1%
N/A
7.7%
7.2%
6.8%
8.1%
9.4%
7.7%
7.2%
7.3%
8.1%
6.5%
9.1%
8.5%
7.0%
8.7%
9.1%
8.2%
7.3%
8.2%
7.8%
7.7%
7.5%
Premium or
Discount of
clean price to
Average
NTAV monthly trade
NTAV
R`mil
2315
820
6298
6115
8166
1812
1168
1643
755
863
715
1529
381
1650
2876
1572
1619
1405
2409
1177
867
596
686
686
996
917
1118
815
527
792
971
827
160
199
888
1064
1118
51.13%
20.2%
43.0%
129.4%
61.6%
49.3%
86.6%
16.1%
51.7%
39.9%
246.0%
35.6%
21.0%
29.7%
8.8%
35.3%
59.7%
-2.1%
17.8%
14.2%
9.1%
4.1%
8.2%
45.1%
43.4%
15.3%
24.8%
44.8%
30.4%
13.0%
13.5%
-0.8%
3.0%
26.7%
46.4%
-16.6%
11.1%
-74.7%
10 938.41
2 838.9
1 930.7
572.7
1 251.3
922.7
338.4
514.2
439.6
247.7
89.7
156.3
252.5
266.4
383.0
17.5
50.0
191.3
157.9
63.2
113.9
80.9
58.4
118.7
115.8
25.6
48.6
57.5
32.1
143.8
29.9
18.5
12.2
9.9
14.6
5.6
19.0
24.7
Debt%
33.19%
31.6%
40.1%
8.3%
31.0%
27.9%
38.4%
26.4%
39.0%
52.7%
73.9%
27.2%
25.2%
29.2%
35.4%
33.7%
49.6%
23.8%
23.2%
34.4%
38.5%
48.2%
39.1%
34.0%
34.0%
34.2%
24.5%
37.0%
38.8%
39.7%
69.5%
36.6%
8.0%
20.9%
67.8%
66.7%
38.3%
93.1%
INFORMATION SOURCE AND METHODOLOGY
*
Catalyst Calculations of effective and see-through gearing
Data
I-Net Bridge unless stated otherwise
Calculations and forecast estimates
Catalyst Fund Managers
Rolled yield
Time weighted current 12 month historic distribution divided by the clean price.
NTAV
Net Asset Value adjusted for deferred tax and intangibles
Debt%
Balance sheet long term interest bearing debt / income earning property assets,
adjusted for see-through debt where information provided
N/A
Note the Historic yield was calculated excluding Attacq, Resilient, Pivotal and Nepi.
Cape Town
Tel: (021) 657 5500
Email:
[email protected]
Website:
www.catalyst.co.za
1
MAY 2015
INDIVIDUAL SHARE PERFORMANCE Historic performance for 2015
Individual stock performance
SA Listed Property Index (SAPY)
Capped Property Index (PCAP)
PIVOTAL
SYCOM
SIRIUS
ACSION
HOSPITALITY-A
INGENUITY
REBOSIS
IAPF
HOSPITALITY-B
OCTODEC
NEW EUROPE PROP
ROCKCASTL
DELPROP
STENPROP
RI PLC
ACUCAP
FORTRESS-A
TEXTON
EQUITES
SA CORPORATE
SAFARI
EMIRA
CAPCO
DIPULA-A
ASCENSION-A
SYNERGY B
TOWER
VIVIDEND
INVESTEC PROPERTY FUND
INTUPROP
ARROWHEAD B
ASCENSION-B
VUKILE
ARROWHEAD A
GROWTHPOINT
SYNERGY A
ACCPROP
CAP PROP
REDEFINE
FOUNTAINHEAD
LODESTONE
MAS
ATTACQ
PUTPROP
FORTRESS-B
RESILIENT
FAIRVEST
DELTA INTERNATIONAL
FREEDOM PROP
Jan
Feb
Mar
Apr
YTD
7.38%
3.16%
2.64%
0.04%
13.74%
6.73%
8.05%
3.40%
-7.80%
-3.67%
20.79%
1.12%
3.63%
-1.26%
32.02%
17.57%
3.50%
8.31%
8.16%
-7.69%
-0.91%
8.00%
7.63%
14.12%
2.27%
8.79%
1.27%
11.14%
3.52%
6.33%
4.76%
13.38%
10.56%
0.00%
11.45%
6.72%
5.32%
9.35%
13.39%
5.88%
6.58%
10.28%
-1.43%
11.37%
6.54%
8.88%
0.00%
-3.55%
3.55%
2.56%
16.15%
5.17%
7.41%
2.04%
-2.50%
2.91%
-2.13%
7.93%
8.46%
3.14%
-6.49%
8.14%
1.95%
-5.53%
-2.99%
0.62%
16.54%
11.79%
-5.42%
9.10%
3.38%
1.70%
-4.52%
4.46%
12.89%
-1.92%
12.38%
-4.68%
6.85%
-4.68%
5.45%
0.00%
3.88%
0.00%
-2.99%
-0.76%
0.00%
9.67%
-0.15%
-1.01%
1.30%
1.69%
-5.80%
-1.48%
3.86%
1.74%
37.45%
5.26%
1.19%
-8.63%
49.78%
8.36%
14.94%
7.45%
-2.56%
1.88%
4.62%
4.54%
-5.08%
-7.76%
1.93%
0.00%
-5.04%
-0.99%
7.36%
-2.88%
2.49%
12.42%
1.12%
-6.56%
3.96%
-0.09%
-2.64%
2.98%
-1.57%
-0.29%
-5.45%
1.36%
-0.96%
-1.79%
7.19%
3.33%
-1.01%
0.00%
-1.05%
-2.23%
3.97%
4.12%
-2.33%
4.63%
-0.46%
4.73%
3.69%
-0.85%
4.73%
10.04%
-4.42%
-2.50%
12.75%
-4.00%
3.69%
10.93%
11.54%
-8.10%
-13.16%
0.29%
30.39%
14.33%
10.36%
7.61%
7.55%
7.53%
6.91%
6.73%
5.93%
4.81%
4.66%
4.65%
4.44%
4.26%
3.34%
3.32%
2.56%
1.93%
1.92%
1.63%
1.18%
1.11%
0.61%
0.09%
0.00%
0.00%
0.00%
0.00%
-0.06%
-0.16%
-0.20%
-0.34%
-0.94%
-0.99%
-1.12%
-1.16%
-1.34%
-2.29%
-2.74%
-3.01%
3.73%
-3.79%
-4.12%
-4.17%
-4.22%
-4.36%
-4.65%
-8.86%
-24.24%
12.22%
44.25%
33.39%
4.75%
-1.38%
23.81%
17.59%
7.26%
-1.43%
45.65%
20.43%
29.37%
42.45%
8.05%
-1.89%
10.05%
13.38%
2.61%
25.14%
15.82%
8.12%
8.86%
8.59%
10.21%
-0.36%
18.42%
17.16%
13.69%
0.00%
6.92%
3.38%
9.28%
24.44%
9.54%
8.58%
6.27%
16.09%
-5.00%
6.30%
12.71%
18.22%
36.27%
-4.77%
13.27%
-13.79%
72.78%
20.91%
31.30%
-8.16%
-37.50%
INFORMATION SOURCE AND METHODOLOGY
Data
Calculations and forecast estimates
# Suspended / Delisted / Not yet listed
Cape Town
Tel: (021) 657 5500
Email:
[email protected]
Website:
www.catalyst.co.za
I-Net Bridge unless stated otherwise
Catalyst Fund Managers
2
MAY 2015
SECTOR SNAPSHOT Ascension
Capital and Counties
Ascension and Rebosis issued a circular to their respective
unitholders that pertains to Rebosis proposed scheme of
arrangement to acquire Ascension properties. The swap ratio
proposed by Rebosis is 23.549 Rebosis ordinary shares for
every 100 Ascension B units held. Rebosis will offer 19.34236
new “Rebosis A” shares for every 100 Ascension A linked units
held.
Capco advised shareholders that the completion of Earls Court
Partnership Limited (ECPL), the investment vehicle established
with Transport for London in respect of Earls Court 1 & 2, has
occurred following the grant of leases and transfers of land into
ECPL.
The circulars are available on each company’s website.
The following direct or indirect directors’ dealings occurred:
Name
Type
Date
Volume
Price
Acucap
Gary Yardley
Purchase
17 Apr 2015
8 970
£4.07
The following direct or indirect directors’ dealings occurred:
Gary Yardley
Sale
17 Apr 2015
8 970
£4.01
Name
Type
Date
Volume
Price
Frank Berkeley
Sale
30 Mar 2015
37 670
R 56.29
Frank Berkeley
Sale
31 Mar 2015
37 801
R 56.34
Arrowhead
Arrowhead advised unitholders that a circular to linked
unitholders has been issued relating to the following:
o
o
The conversion of the company’s current A linked capital
structure to an A ordinary share structure by way of a
substitutive share-for-share transaction and,
The conversion of the company’s current B linked capital
structure to an A ordinary share structure by way of a
substitutive share-for-share transaction.
Attacq
The following direct or indirect directors’ dealings occurred:
Name
Type
Date
Volume
Price
Morne Wilken
Sale
01 Apr 2015
80 926
R 25.85
Morne Wilken
Sale
02 Apr 2015
163 798
R 25.75
Morne Wilken
Sale
07 Apr 2015
205 276
R 25.70
PH Faure
Sale
09 Apr 2015
4 000
R25.64
Cape Town
Tel: (021) 657 5500
Email:
[email protected]
Website:
www.catalyst.co.za
The following awards of nil cost options were made based on a
market value of 402.93 pence per share:
Name
Exercisable Date
Volume
Ian Hawksworth
1 April 2018
207 728
Gary Yardley
1 April 2018
186 136
Soumen Das
1 April 2018
152 631
Delta
Delta advised shareholders that the board of directors of the
Company passed a resolution on 1 April 2015, granting financial
assistance to Delta International Property Holdings Limited in the
amount of R177,422,700.The financial assistance will be
effected by a refundable cash deposit to Standard Bank of South
Africa Limited to enable Standard Bank to issue debt funding on
behalf of Delta International to the vendor of an asset known as
the Vodacom building located in Maputo, Mozambique in order
to enable Delta International to continue with the purchase
transaction of the Vodacom building.
Unitholders were advised of the renewed cautionary regarding
Delta’s board of directors’ intention to approach shareholders for
approval to exercise the termination clause in its existing asset
management agreement with MPI Property Asset Management
Proprietary Limited and simultaneously enter into an asset
management agreement with a new asset management
company. Shareholders were advised to continue exercising
caution when dealing with the shares.
3
MAY 2015
SECTOR SNAPSHOT Fairvest
Hospitality
Fairvest advised shareholders that the company raised R137
million through the placing of 71 802 000 linked units at a price
of 191 cents per linked unit. Unitholders were further advised
that a circular was distributed to linked unitholders regarding the
conversion of Fairvest’s current linked unit capital structure to a
share only structure. Refer to the company’s website for further
details.
Hospitality advised shareholders that City Lodge and HPF
Properties Proprietary Limited, a wholly owned subsidiary of
Hospitality, have concluded an agreement in terms of which HPF
has disposed of its interests in the Courtyard portfolio to City
Lodge for a total cash consideration of R80 million.
Fortress
IAP advised shareholders that it has acquired an asset located
in Glendenning, North West of the Sydney CBD. The asset was
acquired for AUD 19,170,000 at an annualized yield of 7.66%.
The following direct or indirect directors’ dealings occurred:
Name
Type
Date
Volume
Price
Bermita Schnaper
Sale
02 Apr 2015
36 788
R 31.00
Bermita Schnaper
Sale
07 Apr 2015
23 212
R 31.00
Fountainhead
Investec Australia Property Fund (IAP)
Rebosis
Rebosis released its interim results for the period ended 28
February 2015. The company announced a distribution of
52.46 cents per linked unit for the six months, representing a
DPU growth 8.2% to the comparable period of 2014.
Growthpoint
Ascension and Rebosis issued a circular to their respective
unitholders that pertains to Rebosis proposed scheme of
arrangement to acquire Ascension properties. The swap ratio
proposed by Rebosis is 23.549 Rebosis ordinary shares for
every 100 Ascension B units held. Rebosis will offer 19.34236
new “Rebosis A” shares for every 100 Ascension A linked units
held.
The following direct or indirect directors’ dealings occurred:
The circular is available through on each company’s website.
Fountainhead reported its interim results for the six months
ended 28 February 2015. The company reported a distribution of
30.60cents per unit, representing a 5.5% increase in distribution
growth on the comparable prior period.
Name
Type
Date
Volume
Price
Redefine International
Redefine International reported its interim results for the period
ended 28 February 2015. The company announced a dividend
of 1.60p per share, which is representative of a 6.7% DPU
growth to the comparable period. Redefine International advised
shareholders that Donald Grant was appointed as the
Company’s new Chief Financial Officer, expected to join the
company on 3 August 2015.
JF Marais
Off-market
transaction
01 Apr 2015
3 335
R 26.25
LA Finlay
Off-market
transaction
01 Apr 2015
2 648
R 26.25
JC Hayward
Off-market
transaction
01 Apr 2015
2 426
R 26.25
HS Herman
Off-market
transaction
01 Apr 2015
5 144
R 26.25
JF Marais
Off-market
transaction*
30 Apr 2015
1 748
R 27.25
Safari
LA Finlay
Off-market
transaction*
30 Apr 2015
1 388
R 27.25
The following direct or indirect directors’ dealings occurred:
JC Hayward
Off-market
transaction*
30 Apr 2015
1 272
R 27.25
HS Herman
Off-market
transaction*
30 Apr 2015
Name
2 697
R 27.25
K PASHIOU
Type
Sale
Date
31 Mar 2015
Volume
Price
81 600
R 8.50
* Distribution reinvestment alternative in respect of the special dividend.
# Distribution reinvestment alternative in respect of the 2015 interim
distribution.
Cape Town
Tel: (021) 657 5500
Email:
[email protected]
Website:
www.catalyst.co.za
4
MAY 2015
SECTOR SNAPSHOT Texton Property Fund
Texton advised shareholders that Old Mutual Investment Group
(Pty) Ltd on behalf of segregated clients have decreased their
holding in the company, such that their total interest in the
shares of the company now amounts to 9.48% of the total issued
shares.
Tower
Tower advised shareholders of two acquisition agreements
during the month. Evagold Centre, situated at the corner of the
Golden Highway and Tiro Street Evaton West, was acquired
from Great Lion Acquisitions Proprietary Limited for an
aggregate purchase consideration of R110 million, yielding
9.5%. The second agreement related to the acquisition of the
entire issued share capital of and claims against HTP Holdings
Proprietary Limited, which owns a portfolio of 8 industrial
properties valued at R375 million, from HBW Group Proprietary
Limited for an aggregate consideration of R190 million, yielding
9.2%.
Vukile
Vukile announced an accelerated book build during the month,
raising R1.1 billion through the issuance of 58 323 798 new
shares at a price of R19.00. Of the R1.1 billion of capital raised,
R850 million was raised pursuant to the accelerated bookbuild
process at R19.00 per share and R250 million was raised by
way of placement with the Encha SPV at R18.40 per share in
terms of the Encha equity funding platform arrangements as
detailed in Vukile’s circular issued on 5 June 2013.
Disclaimer:
The information contained in this document is confidential, privileged and only for
the information of the intended recipient and may not be used, published or
redistributed without the prior written consent of Catalyst Fund Managers (Pty)
Ltd. The opinions expressed are in good faith and while every care has been
taken in preparing this document, Catalyst Fund Managers makes no
representations and gives no warranties of whatever nature in respect of this
document, including but not limited to the accuracy or completeness of any
information, facts and/or opinions contained therein. Catalyst Real Estate
Financial Services (Pty) Ltd, its subsidiaries, the directors, employees and agents
cannot be held liable for the use of and reliance of the opinions, estimates,
forecasts and findings in this document.
Cape Town
Tel: (021) 657 5500
Email:
[email protected]
Website:
www.catalyst.co.za
5
MAY 2015